At present, after decades of development, low-voltage electrical appliances have been widely used in various industries of the national economy. The development of the industry is affected by the overall development speed of the national economy. Benefiting from the continuous growth of China's economy, the demand for low-voltage electrical appliances in domestic fixed asset investment, power and industry industries continues to expand, and the low-voltage electrical appliances industry will continue to maintain a steady growth trend.
The 2022 White Paper on China's Low Voltage Electrical Appliance Market shows that the market size of China's low-voltage electrical appliance industry will reach 94.43 billion yuan in 2021, up 9.5% year on year. In the face of the steadily rising market size and industry demand, a group of electrical component suppliers began to explore, Xinling Electric (301388) Co., Ltd. (hereinafter referred to as Xinling Electric) is one of them.
As a domestic first-class electrical component supplier and automation solution integrator, Xinling Electric is mainly engaged in the research, development, production and sales of low-voltage electrical products. After more than 20 years of development, the company has built three self owned brands, namely "Xinling", "Xinda" and "Leiden", by virtue of its excellent research and development capability, production process and product quality. At present, it has established sound sales channels nationwide, The products are widely used in machinery manufacturing, new energy, household appliances, fire protection, power, communications and other industries.
On November 9, Xinling Electric officially landed on the GEM of Shenzhen Stock Exchange, which means that the GEM has ushered in a representative manufacturer of low-voltage electrical appliances. The successful landing in the capital market, on the one hand, is the recognition of Xinling Electric's business capability. On the other hand, the profound accumulation of the industry makes Xinling Electric stand out. With the support of capital, its future development is bound to leap to a new level.
Attach Great importance to R&D Innovation and Achieve Rich R&D Achievements
Globally, the low-voltage electrical appliance industry is an industry with full competition and high degree of marketization, forming a competitive pattern in which strong multinational companies coexist with local competitive enterprises in various countries. With the increasingly fierce competition in the low-voltage electrical appliance industry, the demand of end customers for the structure, function, performance stability and service life of products has become increasingly diversified, and only the R&D level is excellent only a team with rich R&D experience can cope with changes in the market.
As one of the leading enterprises of low voltage electrical appliances in China, Xinling Electric has attached great importance to independent research, development and innovation since its establishment, continued to carry out research and development investment, improved and improved the technical level of existing products and constantly developed new products. From 2019 to 2021 and from January to June 2022, the R&D expenditure of the company was 19587300 yuan, 2220800 yuan, 2746300 yuan and 12847600 yuan respectively, accounting for 5.22%, 4.98%, 5.27% and 4.94% of the operating revenue, respectively, which was relatively high and stable. During the reporting period, the number of R&D projects carried out by the Company was 20, 22, 29 and 31, respectively. The R&D projects were rich and related to the main business of the Company.
At the same time of continuous R&D investment, Xinling Electric also deeply studied the development status and technology development trend of the industry, complied with the characteristics of miniaturization and intelligence of low-voltage electrical appliances, established a special R&D team, and improved its software development ability to meet the requirements of automation, digitization and intelligence of electronic control components in low-voltage electrical appliances.
Through years of technology accumulation, the company has mastered the software development capability covering the existing product categories, independently developed and obtained 88 software copyrights, formed the traditional industrial control component networking, intelligent manufacturing cloud platform, human-computer interaction interface (HMI) and other product/technology reserves, and laid the foundation for the arrival of the Internet of Things in the industrial control field.
In addition, Xinling Electric, as a member of the Technical Committee of Zhejiang Low Voltage Electrical Apparatus Standard Edition, also actively participated in the drafting of industrial standards, and participated in the preparation of China's national metrological technical specification "JJF1282-2011 Electronic Time Relay Calibration Specification" and Zhejiang manufacturing group standard "T/ZZB0960-2019 Time Control Switch", As the main drafting unit, he participated in the preparation of the certification technical specification of China Quality Certification Center "CQC1127-2017 Technical Specification for the Certification of Electronic Controllers for Automatic Transfer Switch Electrical Appliances", Zhejiang manufacturing group standard "T/ZZB1576-2020 Time Relay", Zhejiang manufacturing group standard "T/ZZB1630-2020 Automatic Transfer Switch Electrical Appliances", and Zhejiang manufacturing group standard "T/ZZB2166-2021 Inductive Proximity Switch". The company's technical strength has been recognized by the industry and competent authorities.
With its industry-leading R&D and innovation capabilities, Xinling Electric has achieved rich R&D achievements. As of June 30, 2022, the company has obtained 417 authorized patents (including 14 invention patents), forming 10 original technologies and 28 general technologies related to its main business.
The continuous high R&D investment has also brought many honors to Xinling Electric. Since 2009, the company has been continuously evaluated as a national high-tech enterprise, and has won "Zhejiang Patent Demonstration Enterprise", "Zhejiang Provincial High tech Enterprise Research and Development Center", "National Torch Program Project", "Zhejiang Provincial Enterprise Research Institute", "Zhejiang Enterprise Technology Center", etc.
Rapid growth of revenue, raising funds to expand production, further enhancing core competitiveness
With continuous technological innovation and services, Xinling Electric's business performance has entered the fast lane.
From 2019 to 2021, the operating revenue of the Company was 376 million yuan, 445 million yuan and 521 million yuan respectively, and the net profit of the same period was 49.3766 million yuan, 87.1551 million yuan and 85.5344 million yuan respectively.
After comprehensive consideration of the current business situation, industry market environment and orders in hand, Xinling Electric preliminarily estimated that the company's revenue from January to September 2022 is expected to be 370 million yuan to 450 million yuan, with a year-on-year change of - 2.54% to 18.53%. It is expected to realize a net profit attributable to the shareholders of the parent company of 47 million yuan to 66 million yuan.
At the same time, the company has passed the strict supplier screening system of leading enterprises in the industry by virtue of its excellent R&D capability, production process and product quality, and has established long-term and stable cooperation with many well-known enterprises in the industry, such as Chint Group, Tianzheng Group and Siemens.
In order to win more opportunities in the industrial application field, Xinling Electric has established a sales system combining distribution and direct sales. In the first half of 2022, there will be 131 signed dealers nationwide. In recent years, the company has also actively expanded overseas markets by setting up product lines more suitable for overseas markets, participating in various exhibitions, network promotion and other ways; And we continued to strengthen technological innovation, forming a two-way business pattern of private brand+ODM.
While continuing to build the marketing network, Xinling Electric will also increase its brand publicity, new product promotion and support for the expansion of specialized market segments, so that the company's business development will always maintain a strong momentum.
Although Xinling Electric has seized the market opportunities in recent years and achieved rapid growth in operating revenue, the company's products are mainly oriented to the industrial control industry, with a wide range of downstream applications, and customers in different industries may have different demands for products; At the same time, with the continuous popularization and application of new technologies such as big data, cloud computing, the Internet of Things, and 5G communications, downstream customers also put forward new demands for the functional completeness and operational convenience of products. In addition, many production lines of Xinling Electric, including relays, instruments and sensors, have been operating at full load, and the capacity utilization rate of some production lines is close to or more than 100%.
Under this background, Xinling Electric plans to raise 392 million yuan in this IPO, mainly for the construction of industrial automation control electrical components intelligent manufacturing factory construction project, electromagnetic relay, microswitch production line construction project and intelligent distribution electrical equipment production line construction project.
If the project can be successfully put into operation, Xinling Electric is expected to increase the annual output of 5.5201 million (pieces, sets) low-voltage electrical appliances, 17.5 million electromagnetic relays, 31.32 million microswitches, 2.25 million surge protectors, 418000 dual power automatic transfer switches and other intelligent low-voltage electrical appliances. Substantial increase in production capacity is expected to promote the company's performance expectations.
Looking forward to the future, Xinling Electric said that the company will combine the industry development trend, downstream customers and market demand to iteratively upgrade existing products, continuously improve the market competitiveness of core technology products, and accelerate the industrial layout of new products. At the same time, the company will continue to increase R&D investment through the implementation of fund-raising projects, improve the company's overall R&D capability, enhance brand value, enhance the company's core competitiveness, and realize the transformation of product positioning from low-end to high-end. Article/Chen Yu
